Process
Before You Begin
Create a Team Wiki at www.wikispaces.com and specify team members who can edit your pages. This is where you can collaborate and share your findings. What's a wiki you ask?
How is it possible to buy something you
really want without using money?
Week 1 Objectives
- Learn about and demonstrate your knowledge of credit card basics.
- Find out what terms are associated with credit cards.
- Discover the advantages and disadvantages of having a credit cards.
Read all about Credit Cards at Wikipedia
"The ABC's of Credit" Acquiring a credit card and managing it wisely are two of the necessary steps toward building a good credit history. Follow Maria and Tomoko as they learn about the five C's of Credit and begin to establish a positive credit history. View the video together at Citigroup.com
Take the Credit-Ed Challenge Tutorial
- Module 3: Learning about credit cards
- Module 4: Understanding credit card terms
Build a Glossary of Terms
Use wikispaces.com to create your list and write definitions using your own words as much as possible. Citibank has a glossary here. Words to include can be found at this web page. You can also use Wikipedia or other sources. Divide the words up between team members. Everyone write a meaningful paragraph incorporating at least five of these words.
Read More About It
Everyone read the book excerpt The Freshman Ten. Then review the other articles using links on that page. Divide the articles up between team members. Choose 1 article each and write a summary about it.
Discuss and Write 2 Lists
As a group, discuss the pros and cons of having and using credit cards. Create lists of the advantages and disadvantages of using them.
Complete Charge It Right Course
Each team member will go to the FDIC website and complete the FDIC Money Smart online section on credit cards, "Charge it Right." Print your certificate indicating completion.
Week 1 Producion List
- Group Glossary
- Individual paragraphs using new terms.
- Individual summary of one article.
- Group lists of advantages and disadvantages
- Printed Certificates for Each Team Member from Charge it Right
Week 2 Objectives
- Compare different credit cards.
- Calculate how much it costs to use credit cards.
Read, review and discuss the following articles:
Are you credit card smart? Check out this article from the College Board. The High Cost of Using Credit Cards - What the credit card companies don't want you to know. Choosing A Credit Card from the Federal Reserve Board offers advice. Best Credit Cards for Students, choose them wisely
Compare Credit Cards
Create a table to compare credit card offerings. Include the following information for 4 different cards. Read the extra information and make appropriate comments. You can use this form from the Federal Reserve Board. Each team member should research one credit card.
Check Bankrate.com's Survey of Student Credit Cards
Calculate the Cost of Credit Card Purchases
1. Complete this MS Word table or create a new one using a spreadsheet, and/or enter the data into your wiki.
Directions: Use the interest rate of 18% and an annual fee of $49 dollars to complete this chart. In Month 1, there was a balance due of $3,000. The borrower will make a monthly payment of $200 and keep new purchases at $115 per month for the year.
Calculate the interest for each month (balance x 1.5%). To obtain the balance for the next month, subtract the payment from the balance and add the cost of new purchases plus monthly interset and fee. For example: $3,000 - $200 = $2800 + $115 + $94 = $3,009
Have more time? Try a different scenario, such as 22%,
or 12% interest. How much difference does the interest rate
make?
2. Calculate the total cost of purchasing a laptop computer for $500 using the terms of the 4 credit cards you compared. Include the following information: How long will it take to pay off $500 if you just make the minimum payment. How much will you have to pay every month if you want to pay off the balance in 12 months or 24 months? What is the total cost (purchase price plus interest and fees) of these 3 scenarios. Each team member should use 1 card to calculate the results.
Credit Card Calculators can be found on the Internet. Here's one from Kiplinger.com. Here's another one from CreditCardNation.com. Yet another can be found here.
Week 2 Production List
- Table One: Comparison of 4 Credit Cards (1 card per team member)
- Table Two: Cost of Credit Card Purchase with $3,000 balance (Group table)
- Table Three: Cost of $500 Laptop Purchase (4 cards, 3 scenarios - 1 card per team member)
Week 3 Objectives
- Create a list of credit card questions
- Make your recommendations.
Should you or your friends get credit cards when you graduate high school or start college?
What do you Recommend?
Write of List of Questions
1. As a group, write a list of questions a student should ask when shopping for a credit card.
Present Your Recommendations & Advice
2. If you haven't done so already, consolidate your research and activities into one website; your wiki will work just fine for this. Create a page with your advice and recommendations.
Be sure to address most of the following points in an organized informative matter. Also look back at the TASK PAGE for other items you may want to address. These points are not listed in any particular sequence.
- Do college students need credit cards?
- If so, how many credit cards should a student have?
- What should their credit limit be?
- What are some of the dangers of having a credit card?
- What advice would you give to someone who just got a credit card?
- How much credit should a college freshman have, if any?
- How much of a balance should you carry on a credit card?
- How important is the APR and the annual fee?
- What should you do if you have a credit card and can't make the payment?
Your recommendation & advice page(s) should also include an appropriate image that is licensed for your use. Review the Production Lists to be certain that everyone has completed all the tasks and that work has been posted to your Team Wiki or printed if instructed. You may also demonstrate your understanding and knowledge by writing a letter, creating a slide presentation, video or another website and link that to your wiki as well.
Here's a credit card simulator you can try.
This information is also at http://teacherlynneb.googlepages.com/cc04